Charles Schwab Declares Quarterly Dividend of $0.27

The Charles Schwab Co. (NYSE:SCHW) announced a quarterly dividend on Wednesday, January 29th. Shareholders who are on record by Friday, February 14th, will receive a dividend of $0.27 per share on Friday, February 28th. This marks an increase from the previous quarterly dividend of $0.25 and represents an annual dividend of $1.08, resulting in a yield of 1.31%.

Over the past three years, Charles Schwab has consistently increased its dividend payments, averaging an annual growth rate of 11.6%. The company maintains a dividend payout ratio of 19.2%, indicating that its earnings adequately support its dividend payments. Analysts have forecasted that Charles Schwab will earn $5.11 per share next year. This projected earnings figure suggests that the company should comfortably cover its total annual dividend of $1.08, with an anticipated future payout ratio of 19.6%.

Stock Performance

On the day of the announcement, shares of NYSE SCHW saw a slight increase of 0.5%, trading up by $0.43 to reach $82.13. The company experienced a trading volume of 8,717,347 shares, which is relatively close to its average volume of 9,207,134 shares. Currently, the fifty-day moving average price stands at $77.86, while the two-hundred-day moving average price is $70.92. Charles Schwab boasts a market capitalization of $146.17 billion, with a price-to-earnings ratio of 27.47 and a price-to-earnings growth ratio of 1.46. The stock has experienced a 52-week low of $61.01 and a high of $83.35. The current ratio and quick ratio for the company are both 0.47, and it has a debt-to-equity ratio of 0.59.

Recent Earnings Results

Charles Schwab previously announced its quarterly earnings results on January 21st, reporting an earnings per share of $1.01 for the quarter, exceeding the consensus estimate of $0.90 by $0.11. The firm recorded revenues totaling $5.33 billion, surpassing analyst expectations of $5.19 billion. Charles Schwab reported a net margin of 30.31% and a return on equity of 18.20%, with revenues growing 19.5% compared to the same quarter last year. In the previous year, the company had earnings per share of $0.68. Analysts project that Charles Schwab will achieve earnings per share of $4.09 for the current fiscal year.

Analyst Opinions

Several financial institutions have recently shared their thoughts on Charles Schwab's stock. JPMorgan Chase increased its price target for the shares from $87.00 to $93.00 and rated the company as “overweight” in a recent research report. Similarly, JMP Securities established a new target price of $94.00 (up from $84.00) while maintaining a “market outperform” rating on the stock. UBS Group also raised their target price to $95.00 and assigned a “buy” rating. Meanwhile, Cowen repositioned their target price from $69.00 to $75.00 and issued a “hold” rating. Additionally, Keefe, Bruyette & Woods increased their target from $81.00 to $93.00 while rating the stock as “outperform.” Overall, the stock has received mixed ratings, with two analysts rating it as a sell, seven as hold, and nine as buy, resulting in an average rating of “Hold” with a consensus target price of $84.11.

Insider Activity

In addition, corporate insiders have been active in recent trading. Director Arun Sarin sold 8,548 shares of the stock on January 23rd at an average price of $81.82, totaling approximately $699,397.36. As a result of this transaction, Sarin now owns 18,617 shares, valued at around $1,523,242.94, which is a decrease of about 31.47% in position. Additionally, Director Christopher V. Dodds sold 9,284 shares on November 18th at an average price of $81.43, amounting to roughly $755,996.12. Following this trade, Dodds retains ownership of 442,807 shares, valued at approximately $36,057,774.01, marking a 2.05% decrease in his ownership. Over the past 90 days, insiders have sold 50,014 shares of the company worth $4,052,281, with corporate insiders holding 6.60% of the company's stock.

Company Overview

The Charles Schwab Corporation, through its subsidiaries, operates as a savings and loan holding company that offers various services, including wealth management, securities brokerage, banking, asset management, custody, and financial advisory services, both in the United States and internationally. The company operates in two main segments: Investor Services and Advisor Services.

Dividend, Stocks, Earnings